Virginia Employment Commission settles lawsuit over unemployment processing
(The Center Square) – A judge has signed a settlement agreement that forces the Virginia Employment Commission to address the backlog in pending unemployment eligibility cases, which has caused a delay in processing.
The VEC has failed to process nonmonetary eligibility cases in a timely manner, according to the lawsuit. When a person’s eligibility is questioned, the agency must make a determination within three weeks, but the agency failed to meet that deadline in 95% of cases, the plaintiffs claimed in the class-action lawsuit.
Most eligibility reviews were taking 10 weeks or more before eligibility was determined, but many cases were taking longer. In a few cases, applicants waited several months or even more than a year.
Per the settlement, the VEC must eliminate the backlog by Sept. 6 and accelerate the adjudication of claims from 10,000 cases per week to 20,000 cases per week by Aug. 1. The VEC immediately must process claims covered by Pandemic Unemployment benefits and identify and resume recipients who were improperly cut off.
The VEC’s performance and its deadlines will be monitored by the court, and the agency will be required to provide the court with weekly updates. The settlement pauses the lawsuit, which was filed by several groups, including the Legal Aid Justice Center, Legal Aid Works and the Virginia Poverty Law Center.
“For more than a year, we have heard daily from Virginians across the state who needed to get emergency help – often for the first time – and instead got delays,” Pat Levy-Lavelle, an attorney for the Legal Aid Justice Center, said in a statement. “Many Virginians did receive benefits, and we know that people at the VEC have been working hard during the pandemic. Still, this lawsuit has been about getting more help for gaps in the system and the Virginians who desperately need it. The steps ordered today are a hopeful sign that help is on the way.”
The VEC has received 1.6 million claims since March 2020, a spike caused by the COVID-19 pandemic and subsequent economic restrictions. According to the VEC, this was an all-time high and was 10 times more than the previous year.
“The VEC is grateful that Judge Hudson has recognized the hard work of our employees throughout this pandemic, and we will continue to ensure Virginians have access to all benefits for which they are eligible,” Commissioner Ellen Marie Hess said in a statement. “The VEC is focused on serving our customers, and we are committed to continuing the important work our team is doing for their fellow Virginians.”
Gov. Ralph Northam directed $20 million to the VEC last week for additional staff and other upgrades to assist with the backlog and make other reforms for the long term.
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